Used car data regularly incorrect
New research has found that eight per cent of used cars have potentially conflicting information attached to their digital record – meaning that any finance quotes supplied for them could be incorrect.
Motor retail technology specialist iVendi found that from a sample of around 140,000 vehicles being sold online, more than 11,000 had a potential problem.
This means that the quotes being delivered to customers could be incorrect on a typical PCP quotation – and it is also possible that the error would be carried through to any finance deal that is ultimately concluded for the vehicle.
James Tew, CEO at iVendi, said: “A vehicle’s digital record will include data about the car including a physical description but also a taxonomy code from an established industry data provider. This is used as a standard method of identifying a car by the finance company.
“The taxonomy code has either been allocated by a person making a visual check or, increasingly often, using automated systems that have become popular.
“The problem is that, by it’s very nature, vehicle taxonomy is complicated and it is very easy for both humans and software to get the taxonomy code wrong. The majority of errors concern numbers of doors, transmission types and trim levels and, while these are of some concern, they are probably of limited impact on the value of the vehicle or the finance quote.
“In other cases though, the mistake is much more fundamental. It is not too difficult within the data we have compiled to find complete misidentifications such as prestige cars that have been listed as panel vans.”
He added: “The wrong code means the wrong valuation and the wrong forecast residual value for the PCP. This can have a positive or a negative effect from a financial point of view but it remains an error and one that can have unpredictable results.
“Of course, these mistakes also potentially have implications from an FCA and ASA point of view, which is something that could have serious implications for retailers
“Everyone knows that this happens but there is a general assumption that the errors are relatively rare and quite nuanced – just the wrong trim level. What we have found is that the problem is quite widespread and potentially more impactful.”
